Liquor Licenses

The Telluride Liquor Licensing Authority and the Colorado Department of Revenue must both approve any application for a liquor license, or any change to a liquor license. Neither entity may issue a license without the consent of the other.

In Telluride, a hearing officer acts as the local Liquor Licensing Authority for all liquor matters except new licenses. New licenses and appeals are heard by the Town Council for approval or denial. The Local Liquor Licensing Authority meets on a regular basis. An application is placed on the agenda after it is complete and public noticing requirements have been met.

Click here for Liquor Licensing Authority Meeting Agenda October 8, 2009

FORMS/QUESTIONS/FILING

Application forms for all new licenses or changes are available through the Town Clerk. Questions regarding reporting or application procedure can be answered by that office. All filing, including renewals, is done through the Town Clerk.

FEES

Fees must be paid in full when any application is submitted. Please note there are State of Colorado fees and Town of Telluride fees. A copy of the current fee scheduled is included on page 13.

NEW LICENSE

The application for a new liquor license is received by the Town Clerk on behalf of the Town Council. The Town Clerk reviews the application for completeness, refers the application to the Marshals, Building, Planning, Health and Fire Departments for investigation, causes public notice and reports the outcome of the investigation to the applicant, the Town and the Council. The timeline for this process is: the application must be filed and substantially complete 30 days before being scheduled for Town Council, premise must be posted 10 days prior to Town Council, and must be noticed in the newspaper 10 days before Town Council.

The Town Council in public hearing, after taking testimony from interested persons, approves or denies the application based on the following criteria: completeness of application, investigative report by departments, the reasonable requirements and the desire of the adult inhabitants of the neighborhood, and the good moral character of the partners, officers of the corporation or individuals applying for the license.

If approved, the application is sent to the State Department of Revenue for their approval or denial. Only when the State approves a license, and that license is in the hands of the Town Clerk, are both licenses issued. The entire process can take up to 60 days after a complete application is received.

a. Concurrent Review Procedure

A liquor license applicant may apply for a concurrent review by the Town and the State. This means both entities will simultaneously review the application for approval. The fee is $100 to the State and the application must be complete.

b. Qualifications

Where a number of licensed liquor outlets already exist, an applicant must show that the needs of the neighborhood are not adequately being met by existing outlets. This can be accomplished through the submission of maps, statements or petitions, or by providing evidence that might include convenience of access, uniqueness of service or product, hours of operation, needs of the public, population, traffic counts, parking or traffic congestion problems, customer requests, and economic competition.

A liquor license may not be granted to a person unless that person's character, record and reputation is satisfactory to the licensing authority. Criminal history records can be considered in addition to pertinent circumstances, rehabilitation, character references and educational achievements.

c. Petitions

Applicants for new liquor licenses must submit a petition to the Council indicating support for the license in the neighborhood. Staff recommends applicants obtain 100 signatures from residents, and managers/owners of businesses within the neighborhood who are at least 21 years of age.

Applicants must provide the Liquor Authority with sufficient evidence to support its findings that (1) the reasonable requirements of the neighborhood establish a need for the issuance of the requested license, and (2) that the desires of the inhabitants dictate the issuance of the license. A petition must be submitted to the Town Clerk's office no later than 7 days prior to the scheduled public hearing date for review. Within 3 days from receipt of the petition, the Clerk's office will provide applicant with a statement of review concerning the petition signatures verifying that they meet the criteria mentioned above. The applicant will then have a chance to amend the petition, obtain additional signatures, etc. if desired.

This information is meant only as a guideline and is provided as a courtesy by the Town of Telluride. Applicants are encouraged to consult a private attorney for answers to legal questions or concerns.

FINGERPRINTS

Fingerprints of each (1) general and over-5% limited partner, (2) officer, director or over-5% stockholder of a public corporation, (3) individual applying for a liquor license, (4) limited liability member holding 10% or more membership interest, and (5) manager must be provided to the Telluride Marshal's office. The cost for processing is $48.50 payable to the Town of Telluride, which includes $38.50 for the Colorado Bureau of Investigation fee. No application will be referred to the Liquor Licensing Authority until fingerprints have been taken by the Marshal's Department. They will ask for identification before taking fingerprints. Call 728-3819 for the days and times fingerprinting occurs.

DISTANCE REQUIREMENTS

Certain state and local regulations restrict the issuance of liquor licenses in close proximity to schools. In general, the Telluride Municipal Code prohibits the issuance of a liquor license within 500 feet of the R-1 School District elementary and middle/high schools. However, under certain circumstances, private hotel & restaurant or private club licenses may be permitted within the 500 foot limit. There are also restrictions that may apply to the issuance of certain classes of liquor licenses within 500 feet of any parochial or private school.

RENEWAL OF LIQUOR LICENSE

A liquor license is issued for one year. Approximately ninety days (90) prior to expiration of a license, the State will notify the licensee of the need to renew, and will include a renewal form. That renewal is due at least 45 days prior to expiration at the Town Clerk's office. If a renewal application is not received from the State and license expiration is near, contact the Clerk's office at 728-2159 to obtain a renewal form. Failure to renew by the expiration date will result in the loss of the license. In case of late filing (less than 45 days prior to expiration), a $10.00/day late charge is assessed and must be paid with renewal fees. The Town Clerk is unable to accept a request for renewal after the date of license expiration and is authorized to renew licenses within parameters set by the Town Council. Other renewals are heard by the Liquor License Authority and then sent to the State for processing. When the State license is received by the Town Clerk, a Town license is issued.

MANAGERS REGISTRATION

Each liquor licensee shall register its manager with the State and Town. Hotel and Restaurant and Tavern licensees must have a separate and distinct manager and must register that manager with local and state licensing authorities. No person shall be a registered manager for more than one licensed premise. The manager may be required to have fingerprints taken by the Marshal's Department and complete an individual history dependent upon the type of liquor license. Any change of manager requires notification to the State through the Town Clerk's office.

MODIFICATION OF PREMISE

Once a license is issued, the liquor premise may not be changed or substantially altered without prior written consent of the Liquor Licensing Authority and the State Department of Revenue. This does not include simple changes, i.e. painting or redecorating, but does include creation or relocation of a common entryway or doorway, bar, etc. Should you have questions as to whether your alteration is subject to reporting, please call the Town Clerk's office. Application for modification of premise is to be made to the State through the Town Clerk's office.

TRADE NAME CHANGE

The business name, commonly known as the trade name or "d/b/a" must be properly listed on licenses. If exterior signs are posted, they too must properly reflect the correct business name. Application to change the name or trade name must be made to the local and state licensing authorities not less than 10 days prior to the change of name, through the Town Clerk's office.

TRANSFER OF OWNERSHIP OR CHANGES IN HOLDING STRUCTURE

In cases of transfer of ownership occurring due to the sale of a business or change in ownership structure, a transfer of liquor license may be applied for from the Liquor Licensing Authority and the State Department of Revenue. The process is similar to the application for a new license except there are no public notice requirements. Application for a Town of Telluride Temporary Liquor License may be made for the bridge period through the Town Clerk's office upon filing of a transfer application.

TRAINING WORKSHOPS

As a condition of the liquor license, the applicant must attend a liquor service workshop that includes training in the lawful dispensing of alcohol. All liquor license holders and managers are required, as per Municipal Code section 6-2-140, to attend workshops at their own expense within one (1) year after issuance or renewal of the license, provided that no person shall be required to attend more than one such workshop within a three-year period. Failure to attend or submit evidence of attendance at a liquor training workshop is a violation of the condition of the license. Managers of Special Events are also required to attend liquor workshops. The Town offers two TIPS^TM alcohol service workshops a year and there are also private providers in the region. Alternatively, the course may be taken on line at: http://www.gettips.com/eTIPS.shtml (eTIPS for On Premise Training).

ALCOHOL SALES HOURS

For consumption on the premises (taverns, restaurants, brew pubs): 7 AM until 2 AM, 365 days a year. For sales of liquor in sealed containers NOT for consumption on the premises (i.e. liquor stores, drug stores and brewpubs): alcohol in sealed containers from 8 AM until midnight every day except Christmas Day.

CONTROL OF PREMISES

All licensees must have possession of the premises at all times by deed, lease, sub-lease, etc. Exterior licensed areas must be in possession of the licensee, who must be able to demonstrate control over the areas licensed. Example: access controlled to and from an outdoor patio area to ensure all alcohol purchased on the premise remains on the premise, and to keep minors from gaining access to alcohol.

SALE TO MINOR PROVISIONS

It is unlawful to sell, serve, give or allow the consumption or possession of alcohol beverages to or for a person under the age of 21 years. On-premises or 3.2% Beer licensees (with the exception of Tavern licensees who do not regularly provide full meals) may employ persons who are at least 18 years of age to participate in the selling, serving or giving of alcohol beverages if they are actively supervised by a person at least 21 years old (18 for 3.2% beer).

PUBLIC CONSUMPTION OF ALCOHOL

Colorado law prohibits public consumption of malt liquor (beer other than 3.2%), vinous liquor (wine), and spirituous liquors in public, except in a business that has a liquor license. Public consumption of 3.2% beer is not prohibited by state law.

BRINGING YOUR OWN ALCOHOL

It is unlawful to bring alcohol into any place that is licensed to sell or serve alcohol beverages, e.g. bars, restaurants, sports stadiums. It is also unlawful to bring alcohol into any unlicensed public business, e.g. restaurants, for consumption due to the prohibition on public consumption.

CORKING

Effective July 1, 2004, Hotel and Restaurant license holders, at their discretion, are allowed to permit a customer to reseal and remove one corked 750 ml or less bottle of wine from the licensed premise. It is recommended that the corked bottle be encased in a wrapper or covering.

OPEN CONTAINER LAW

Telluride Ordinance 1226 amended the "Open Container" ordinance to reflect that it will no longer be a violation for a person to have possession of a partially consumed and re-corked bottle of wine that has been removed from a licensed premise.

TASTINGS

As of July 20, 2004, Town Council Ordinance 1220 authorized retail liquor stores and liquor licensed drug stores to conduct alcoholic beverage tastings in accordance with new State law. Additionally, the Town adheres to State regulation 47-605, Responsible Alcohol Beverage Vendor and Permitted Tastings, which sets standards for conducting tastings. The standards call out specifications for training programs and training class curriculum. Please refer to the State website to view these standards. Intranet links to the State law and the Town ordinance are included in this booklet on page 14.

SUSPENSION

The State or local Liquor Licensing Authority has the power to suspend or revoke any license issued for any violation by the licensee, its agents, servants, or employees, of any rules or regulations or any terms, conditions or provisions of the issued license. On its own motion or on complaint, an investigation and public hearing is held at which time the licensee is afforded an opportunity to be heard regarding the above.

CONDUCT OF ESTABLISHMENT

Allowable conduct in licensed liquor establishments is defined in the Colorado Liquor/Beer code. It is recommended all licensees become familiar with these sections.

CATERING

State regulations regarding catering off the licensed premise allow the provision of food and a bartender, but not the provision of beer, wine or spirituous liquor.

FOOD REQUIREMENTS

The meal/food requirements for the different types of licenses are:

• Hotel and Restaurant - Must be a bona fide restaurant with a menu, serving full meals between 8 am and 8 pm (to the extent open during those hours), and snacks at other times. At least 25% of the sales (between food and drink) must be from the sale of full meals.

• Tavern - Must have light snacks (chips, pretzels, nuts, etc.) and sandwiches (prepackaged pizzas, burritos, etc.) available for consumption during all business hours.

• Beer and Wine License - Must have light snacks (chips, peanuts, etc.) and sandwiches (prepackaged pizzas, burritos, etc.) available for consumption during all business hours.

• Retail Liquor Store - may not sell food items

• Brewpub License - Must be a bona fide restaurant with a menu. At least 15% of the sales (between food and drink) must be from the sales of full meals.

• Special Event Permits - Sandwiches or other foods must be available during the event.

• The following licenses have no food requirements: Bed and Breakfast Permit, Liquor Licensed Drugstore, Optional Premises License, Club License, Arts License, Public Transportation License, Art Gallery Permit.

HEALTH INSPECTION

A health inspection must be obtained from the State Department of Health before a licensed premise may operate. An inspection may be scheduled by calling the San Miguel County Sanitarian at 369-5442.

CLEAN AIR ACT

The State of Colorado Clean Indoor Air Act (HB1175) went into effect on July 1, 2006. This legislation prohibits smoking in virtually all indoor public enclosed areas, and extends outside to within 15 feet of their entrances. Specific questions regarding this ordinance may be addressed to the Clerks Department.

EXCISE TAX

Effective January 1, 2004 under the Telluride Municipal Code Chapter 4-40-10 et seq., there is imposed a 2% excise tax dedicated to fund the Airline Guarantee Program. The tax is charged on any lodging, rental, food or drink served by a restaurant or bar. All vendors are required to make remittance. An excise tax license is required. For information go to www.telluride-co.gov under Finance Dept.

SALES TAX

The Town has a sales tax rate of 4.5% and combined with the State of Colorado sales tax rate of 2.9%, San Miguel County sales tax rate of 1%, and Excise Tax of 2%, the total tax is 10.4%. This tax is to be collected upon the sale at retail of tangible personal property and the furnishing of certain services. The State 2.9% and County 1% is collected by the State. For information on sales tax, go to www.colorado.gov and click on Taxes. The Town of Telluride now collects the 4.5% sales tax. A sales tax license is required and information is available at the Telluride website, www.telluride-co.gov, under Finance Dept.

SPECIAL EVENT PERMITS

The State and Town may issue a Special Event liquor permit , for the sale, by the drink only, of beer, wine and spirituous liquor,.

Organizations who qualify must be (1) incorporated under the State of Colorado as a nonprofit organization or (2) be a regularly chartered nonprofit branch, lodge or chapter of a national organization or society.

A Special Event application must include a possession document (lease or deed), premise drawing, good standing certificate with the State, liability insurance (for public property) and street closure documents (if appropriate). It is recommended this process be started as soon as the date of the event is known, at least 45 days in advance.

For more information, request a copy of the Telluride Special Event FAQs Booklet (available online at www.telluride-co.gov under Town Clerk, Liquor Licenses).

ART GALLERY PERMIT

A business that qualifies as an art gallery under Colorado statutes may apply for an Art Gallery Permit to serve complimentary alcohol beverages up to 15 times a year. The Colorado Liquor Code defines an "art gallery" as an establishment whose primary purpose is the display and sale of works of fine art and precious or semi-precious metals or stones. ("Works of fine art" may include, but is not limited to: painting, sculpture, drawing, mosaic, photography, calligraphy, graphic art, or craft work in materials such as clay, textile, fiber, wood, metal, plastic, or glass.)

Please allow at least 30 days for processing of your application before you plan to begin serving alcohol. An appearance before the Telluride Liquor Licensing Authority will be required.

For more information, request a copy of the Telluride Art Gallery Permit FAQs Booklet (available online at www.telluride-co.gov under Town Clerk, Liquor Licenses).

PHONE NUMBERS AND REFERENCES :

Deputy Town Clerk
970-728-2159
llevin@telluride-co.gov

State Liquor Enforcement
303-205-2300
www.revenue.state.co.us

Regional Enforcement Office
970-248-7133

Colorado Dept. of Revenue - Sales Tax
303-894-2200
www.sos.state.co.us

Link to Colorado Liquor Code Book: http://tinyurl.com/Colorado-Liquor-Code-Book Link to Telluride Liquor Licensing ordinance:http://telluride-co.gov/Modules/ShowDocument.aspx?documentid=807

For further information contact:

Linda Levin
Deputy Town Clerk
Town of Telluride
135 W Colorado Ave, PO Box 397
Telluride CO 81435
970-728-2159
Fax: 970-728-2496
llevin@telluride-co.gov